Billionaire Richard Branson, founder of the Virgin Group, has expressed his interest in buying back the business that started it all, Virgin Records.

Vivendi’s Universal Music Group are currently seeking approval from European regulators for its proposed $1,9 billion bid for EMI’s recorded music business, which owns Virgin Records. Much of the needed approval hangs on a set of concessions, amongst them the sale of some record labels.

Branson, who started Virgin Records in 1970, recently held talks with Patrick Zelnik, the man who runs French independent label, Naive Records and launched Virgin Records in France in 1980. It is believed that if Branson does make a bid for his former-business, that he will do it with Zelnik.

“If Universal is ready to sell Virgin Records, then Richard Branson will support a transaction and support me in doing it,” Mr Zelnik told the Financial Times. “He wants Virgin to be in my hands,” he said, adding that he would merge Naive and Virgin Records if he succeeded.

At this stage talks are still in their preliminary stages at best, and the offer may only include Virgin’s European assets as Virgin in the US is part of EMI’s Capitol Records. Even so, it seems that Branson is excited at the prospect of getting back into the industry after a two decade absence.

“Richard Branson and Virgin have been assessing how to get back into the recorded music business for many years. The potential disposal of Virgin Records by Universal Music offers a wonderful opportunity to recreate a dynamic independent label in the market,” a Branson spokesman told THR.

The potential deal still has many hurdles to clear, least of which is the support of the Impala, a trade group representing independent music labels of which Zelnik is co-president. Zelnik believes that an acquisition like this “could be just what the sector needs” if certain terms were met. Despite his enthusiasm, other members were not convinced, and the organisation failed to break a deadlock with a two-thirds majority on Monday after only 14 of 24 members voted in favour of the deal.

“Our board took a clear decision yesterday to continue its opposition to the Universal/EMI merger, rejecting remedies which do not deal with the specific problems set out in the EC’s statement of objections. The issue isn’t just digital, it’s physical and access to media-exposure for new artists, as well as the foreclosure of independents when it comes to signing artists,” [Helen Smith, Impala’s executive chair] said, adding: “We all respect Patrick Zelnik’s view, but the FT article is the Naive position, not the Impala position.”

The article mentioned was written by Zelnik earlier in the week and expressed his belief that a merger could “rescue the music business”.

Branson started Virgin Records in 1970, but was forced to sell it in 1992 when Virgin Atlantic’s battle with British Airways had become too costly. The record shop was the first business to bear the Virgin name and was the first block of what would later become a multi-billion dollar enterprise which incorporated ventures from multiple industries.

[Sources: THR, FT]